ROBERTO V. GARCIA

Presented by
ROBERTO V. GARCIA
Chairman and Administrator
Subic Bay Metropolitan Authority
BUILDING THE NEW SUBIC
Key Performance Indicators (2012 vs. 2011)
Major developments affecting 2012
 VIP (Vietnam / Indonesia / Philippines) emerging dragon economies
on radar screen of foreign investors
 Strong Philippine economic performance due to investor confidence
arising from good governance practices
 United States “Asia Pivot” strategy
 National government’s decision to utilize SBIA as the Philippine Air
Force’s forward operating base as key defensive strategy
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
3
Key Performance Indicators
NEW PROJECTS AND INVESTMENTS
KPI
2011
Total Committed
US$959 M
Investments
Cumulative
Investments
(1992-2012)
No. of New
Projects
2012
Variance
US$70 M
93%
US$7.83 B US$7.90 B
127
351
0.9%
176%
New Approved Investments
2011 Top New Approved Investments
Committed Investments
Rank
Company
(In US$)
Converted to PhP
(US$1 = PhP43)
1
Energy Logics Solar Holdings, Inc.
458,500,000
19,715,500,000
2
HydroChina Subic Limited Corp.
450,000,000
19,350,000,000
3
Multifront Marketing Corp.
22,696,323
975,941,897
4
Filhan Hotel Leisure & Dev’t. Corp.
2,222,222
95,555,546
5
Subic Super Yacht Haven, Inc.
1,995,000
85,785,000
6
7
8
Rowena Minoo Samurai, Inc.
Bigrid Corp.
First Subic Food Ventures Corp.
1,500,000
1,150,855
932,000
64,500,000
49,486,765
40,076,000
9
Others
20,515,258
882,156,086
US$ 959,511,658
PhP 41,259,001,294
GRAND TOTAL
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
5
New Approved Investments
2012 Top New Approved Investments
Committed Investments
Rank
Company
Converted to PhP
(US$1 = PhP42)
(In US$)
1
Malayan Towage and Salvage Corp.
11,627,000
488,334,000
2
Astro Air International, Inc.
5,270,000
221,340,000
3
Raizen Asia Pte. Ltd.
5,200,000
218,400,000
4
Subic Ray Corporation
4,597,500
193,095,000
5
NSStern International, Inc.
3,609,112
151,582,733
6
Elite Delight Investments Ltd.
2,325,581
97,674,419
7
Global Daeil Subic, Inc.
2,047,619
86,000,000
8
Magnum Air (Skyjet), Inc.
1,599,302
67,170,697
9
AIA Planters Aviation Corporation
1,350,000
56,700,000
10
First Subic Food Ventures Corp.
1,218,333
51,170,000
11
Others
31,611,834
1,327,696,967
US$70,456,281
PhP2,959,163,816
GRAND TOTAL
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
6
New Approved Foreign and Local Investments
New Approved Investments (2011 vs 2012)
Committed
Investment
2011
2012
Increase
Total in US$
959 M
70 M
(889 M)
Less
Renewable
Energy Projects
908 M
Net New
Committed
Investment
51 M
70 M
19 M
37%
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
7
Key Performance Indicators
EXPORTS
2011
KPI
Export
(FOB Value)
2012
Increase
US$0.826 B US$1.927 B
133%
Our Top 3 Exporters in terms of FOB Value
Exporter
Rank
S
FOB US$
1
HHIC-PHIL
1.189 B
2
SANYO DENKI
0.144 B
3
JUKEN SANGYO
0.083 B
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
8
Key Performance Indicators
EMPLOYMENT GENERATION
KPI
2011
2012
No. of Jobs
Generated
88,957
89,104
DOMESTIC
HELPERS/
CARETAKER
0.61%
Increase
0.17%
MANUFACTURING
17.03%
CONSTRUCTION
9.10%
SHIPBUILDING
MARINE RELATED
SERVICES
30.61%
2012 Workforce by Business Sector
SERVICES
42.64%
Contributing to the National and Local Economy
BIR & BOC CASH REMITTANCES
TO NATIONAL GOVERNMENT
Collecting
Agency
2011
2012
Increase
BIR
PhP 1.107 B
PhP 1.286 B
16.22%
BOC
PhP 6.117 B
PhP 6.329 B
3.47%
PhP 7.224 B
PhP 7.615 B
5.42%
TOTAL
Contributing to the National and Local Economy
NATIONAL GOVERNMENT AND LGU SHARES
Allocation from
5% Corp. Tax
2011
National
2012
Variance
PhP199 M
PhP187 M
6%
145 M
139 M
4%
344 M
326 M
5%
LGUs
TOTAL
OLONGAPO CITY
32 M
DINALUPIHAN
16 M
HERMOSA
13 M
SUBIC
18 M
MORONG
11 M
SAN ANTONIO
11 M
S
U
B
I
C
B
A
Y
CASTILLEJOS
10 M
SAN MARCELINO
15 M
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
11
GAINING GROUND
2012 Major Developments and Accomplishments
Financial Performance
HIGHEST PROFIT IN SBMA’S 20-YEAR HISTORY
Net Income
After Taxes
S
U
B
I
C
B
A
2011
2012
Increase
(PhP 1,118 M)
PhP 811M
170%
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
13
2012 Financial Turnaround
Gross Revenues vs. Net Income
Total cumulative loss reduced from PhP 7 to 6.2 Billion
O
F
F
I
C
E
O
F
T
H
E
A
N
D
A
D
M
I
N
I
S
T
R
A
T
O
R
2012 Financial Summary
2011
Revenues
Variance
PhP 1,634 M
16%
(1,006)
-7%
328
628
91%
Depreciation
(676)
(742)
10%
EBIT
(342)
(115)
67%
Other
Income/Expenses
(766)
926
Operating Expenses
EBITDA
(Operating Profit)
Net (Loss) Profit
PhP 1,410 M
2012
(1,082)
(PhP 1,113 M)
PhP 811 M
221%
173%
Increased Revenues by 16%

Revenue
Source
Increase
Land and
Buildings
PhP85 M
Regulatory
Income
84 M
Seaport
Operations
U
B
I
C
A
Y
Total Collected
12 M
AF
Total Collected
3M

Collection of unpaid past due
accounts, totalling PhP34 M

Admission Fees of PhP36 M
for motor vehicles and heavy
equipment

Increase of PhP20 M in
SBMA’s Gross Revenue Share
from locators

Increased fees (Co-location /
19%
3M
B
CUSA
74%
63 M
Airport
Operations
S
12%
CUSA and Admin Fees (AF)
Visa and accreditation /
CRTE/PTO / Vehicle Registration)
7%
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
16
Reduced Expenses by 7%
CUT OPERATING EXPENSES WITH AUSTERITY MEASURES
Decrease
Expense Item
(In Peso Thousands)
Manpower
S
U
B
I
33,323
(17%)
Others (Rentals, meals,
reimbursements, etc.)
8,375
(47%)
Power & Water
4,251
(18%)
Supplies & Fuel
2,561
(57%)
Advertising
1,717
(64%)
Communication Services
1,036
(34%)
Repairs & Maintenance
360
(36%)
Travel & Training
290
(71%)
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
17
Low CAPEX
CUT CAPITAL EXPENDITURES
Decrease
CAPEX
(In Peso Thousands)
Land & Land
Improvements
22,233
(84%)
4,534
(27%)
Equipment Outlays
IT Outlays
S
U
B
I
C
B
A
Y
M
7
E
T
R
O
P
O
L
I
T
A
(100%)
N
A
U
T
H
O
R
I
T
Y
18
Foreign Exchange Gains
FAVORABLE EXCHANGE RATES
ON SBMA’S FOREIGN LOANS
S
U
B
I
2011
2012
FOREX Gains
(PhP .566 M)
PhP 1.11 M
297%
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
19
Increased Operating Profit by 91%
2011
2012
Increase
PhP 328 M
PhP 628 M
91%
The bottomline is that EBITDA substantially
increased.
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
20
2012 Development Highlights
SEAPORT
 Launch of Vale’s Ore Transhipment Hub
 Start of commercial operations of New Container Terminal 2
 Successful holding of First Subic Bay Maritime Conference & Exhibit with
more than 500 foreign and local participants
 Creation of SBMA-initiated Maritime Technical Working Group to implement
stakeholders’ recommendations made during the Conference
 Approved contract and project along Argonaut Highway for a super yacht
marina facility
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
21
Seaport
NEW MARITIME
PROJECTS
 Malayan Towage and Salvage
Corporation
 HY Shipbuilders Corporation
 Asia Pacific Chartering Phil., Inc.
 Sea-tech Marine Automation Co.,
Ltd.
 Multihullsdirect Corporation
2
0
1
1
S
t
a
t
e
o
f
t
h
e
F
r
e
e
p
o
r
t
A
d
d
r
e
s
s
Seaport
OPERATIONS
KPI
Gross
Registered
Tonnage (GRT)
2011
2012
Variance
14,049,553
23,902,552
70%
1,803
2,003
11%
27,671
36,304
47%
2,593,117
2,213,709
15%
No. of Ship
Calls
Containerized
Cargo (in TEUs)
Noncontainerized
Cargo (in MTs)
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
23
2012 Development Highlights
AIRPORT
 Suspension of development plans for airport conversion to a
world class tourist destination in deference to national security
concerns
 Promotion of SBIA for general aviation, aircraft repair, jet
charters and other allied aviation activities
 Use of the airport area as staging ground for various events
ranging from car test driving/product launching, movie
filming/photo shooting by different TV networks and advertisers,
sky diving and triathlon to the VFA or RP-US Mutual Defense
Treaty Exercise
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
24
Airport
OPERATIONS
Source
2011
Lease
PhP 30.56M
(5.6%)
3.75M
5.80M
54.4%
.12M
.17M
40.1%
Royalty
U
B
I
C
B
A
Y
M
Variance
PhP 32.78M
Airport Fees
S
2012
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
25
2012 DEVELOPMENT HIGHLIGHTS
Tourism
513% increase in the number of leisure-related new and expansion
projects (319 in 2012 vs. 52 in 2011)
S
U


Opening of Ayala Land Harbor Point Mall

Subic Ray Corporation residential/condotel facility at Moonbay Marina
area




American International School at the former Legenda Suites
Resom Resort Philippines development of hotel, casino and golf course in
various areas
McDonald’s at Harbor Point and Rizal Highway
Subic Bay Peninsular Hotel (Former Grand Seasons Hotel and Casino)
Puregold Supermarket at Fortuna Anchor Mall, Harbor Point
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
26
Tourism
2012 DEVELOPMENT HIGHLIGHTS
Increase of 130 in the number of
new hotel rooms
Increase of 26% in the number of
other tourism-related facilities
 38 rooms (Terrace Hotel)
 Ayala Land’s Harbor Point
 60 rooms (Mango Valley III)

274 new merchant stores
 20 rooms (Jusco Hotel)

Four (4) state-of-the-art cinemas
 12 dormitory rooms (The Cabin)

Average foot traffic of 29,600 on
weekdays and 39,713 on
weekends
 Additional 31 new restaurants/dining
facilities, including those at Harbor
Point
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
27
Development of Subic Bay as Tourist Destination
Tourism
TOURISM TRAFFIC (Arrivals via SCTEX only)
Year
Visitor
Arrivals
Tourist
Arrivals
Hotel
Guests
Hotel
Occupancy
Rate
2012
5,228,434
1,252,217
1,208,151
69%
2011
4,631,696
1, 150,637
1,106,571
71%
Variance
13%
9%
9%
2%
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
29
Development of Subic Bay as MICE Destination
Tourism
MICE
Meetings/Incentives/Conventions/
Exhibitions
Classification
International
Local
TOTAL
S
U
B
I
C
B
2012
2011
A
Y
No. of Participants
2012
2011
Increase
Increase
11
20
82%
2,725
8,955
229%
131
273
108%
104,382
119,673
15%
141
293
108%
107,107
128,628
20%
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
31
Tourism
SPORTS
Sports Events
Classification
S
U
B
I
C
2011
2012
Increase
International
8
15
88%
Local
27
33
22%
TOTAL
35
48
37%
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
32
2012 Development Highlights
INDUSTRIAL LEASES

Orica Philippines, Inc., first SBF locator
that will use our bunkers in Ilanin Forest
East – Sustainable Use Zone as
regional logistics hub




Linneman Technologies, Inc.
Global Architectural Fabrications Subic
Innovative Fibre Industries, Inc.
Vibro Equipment & Parts Far East Co
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
33
2012 Development Highlights
INDUSTRIAL LEASES

Repossession from defaulting or non-paying locators and residents of leased
premises, totaling some 257,786 square meters (SQM) of land.
Facility
Land Size (SQM)
Paradise Consulting
45,097
Wanbol Area
44,022
Legenda Suites
40, 000
Firing Range
36,261
Edu Palace
25,000
Go-Kart Area
21,020
EOD Area
14,763
“Blue Skeleton”
10,519
Mini-Golf Area
10,000
Aparri Electronic
Corporation
8,104
Summit Hotel
3,000
S
U
B
I
C
B
A
Y
M
E

T
R
O
P
Continuous business mapping of
locators and residents, resulting in
billings of PhP5 M and $10 K for SBMA
sublease shares
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
34
2012 Good Governance Initiatives
ACTIONS TAKEN RELATIVE TO CONGRESSIONAL HEARINGS
Rice Smuggling
Waste Dumping
 Additional control measure,
requiring importers of restricted
goods to secure the necessary
 Suspension of operations of Glenn
Defense Marine and other waste
service contractors, involving the
collection and disposal of ship
permits from concerned
government agencies prior to
unloading the goods in the
Freeport
sewage using sea vessels
 Additional preventive measure,
requiring that all such sea vessel
sewage are to be collected directly
from the ship at the pier and
 Suspension of concerned SBMA
officers and revamp of Seaport
Department
transported by accredited landbased haulers to be treated in
accredited waste treatment plants
 Suspension of involved
trader/locator and subsequent
cancellation its CRTE and PTO
S
U
B
I
C
B
A
Y
M
E
T
R
 Coordination with DENR and
Philippine Coast Guard for
imposition of appropriate penalties
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
35
2012 Good Governance Initiatives

Creation of Regulatory Monitoring Unit for easier
inspection process for renewal of Business Permit
to Operate (BPTO)

Conduct of Social Acceptability Process for RP Energy
project and publication of its final report in SBMA’s website



Management reorganization


Launching of “COMMUNITY WATCH PROGRAM”
S
Implementation of “NO PLASTIC POLICY”
Continuing improvement of Freeport image through
“OPERATION FACELIFT”
Set up of “PROJECT UNITY” with LGUs
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
TAKING OFF
Plans and Prospects for 2013
Asia’s Newest Emerging Dragon
Exchange rate improved
by 3.70%
Asia’s best performing
stock market
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
38
2013 Plans and Prospects
DEVELOPMENT THRUSTS AND ACTION PLANS
1)
Maximize Seaport and Airport capacity utilization
2)
Aggressively promote tourism programs and build new tourism infrastructure
3)
Develop idle properties and lease out remaining available lands
4)
Streamline locator procedures to make them more “customer-friendly”
5)
6)
S
U
Certification by a third party certifying body in ISO 9001:2008 Quality
Management System
Public bidding of SBMA’s 20% share in Subic Water and Sewerage
Company, Inc.
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
39
2013 Plans and Prospects
DEVELOPMENT THRUSTS AND ACTION PLANS
S
7)
Implement new Rationalization Plan and long overdue salary
increases
8)
Complete financial re-structuring plan
9)
Launch new corporate website
10)
Expand SBMA territory through EO 675 to provide land for new
industrial locators
11)
Purchase badly needed equipment for security, maintenance and
infrastructure
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
40
2013 Plans and Prospects
PRIORITY SHOPPING LIST
ITEM
COST
PhP50 M
RFID Gate Security System
CCTV System
50
IT Enterprise Resource Planning System
60
LED and other service vehicles
15
Dump trucks & garbage trucks
13
Harbor patrol boats
9
Others (Supplies, thermoplastic pavement markings, etc.)
5
Traffic light & dump truck repair
3
TOTAL
S
U
B
I
C
B
A
Y
M
E
T
R
PhP205 M
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
41
2013 Plans and Prospects
SEAPORT PROJECTS
 Aggressive marketing by Maritime Technical Working Group for
increased utilization of New Container Terminals 1 and 2 as an
alternate port to decongest Manila
 Second VALE iron ore transshipment operations
 Opening of feeder lines to Singapore and Japan
 Redevelopment of NSD portion
 New ship building projects in Redondo Peninsula
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
42
2013 Plans and Prospects
AIRPORT PROJECTS
 Aggressive marketing for general aviation,
aircraft repair, jet charters, etc.
 Astro Air International, Inc.’s Taiwan-Subic-
Taiwan commercial flights twice a week
 Balikatan exercises at SBIA’s South West
and South East Aprons
 Department of National Defense
to occupy small portion of SBIA under
commercial terms
 Application of EO 271 to be able to take a
portion of the 16 transit flights of Air Macau to
Vietnam, Malaysia and Thailand, and divert
these to Subic
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
43
2013 Plans and Prospects
SUBIC BAY AS A TOP TOURIST DESTINATION
Completion and
Operations
in 2013
Under Construction
Legenda Hotel & Casino
TOTAL
600 rooms
Buma Subic
35 rooms
Rock Crystal Hotel
200 rooms
Freeport Mansions
65 rooms
Subic Bay Peninsular Hotel
1,000 hotel
rooms
100 rooms
Freeport Elite
80 condotel units
Segara Residences
120 condotel
units
6 condotel units
Mora Moto
34 condotel units
A total of 1,120 additional rooms
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
44
2013 Plans and Prospects
TOURISM
Subic Bay as Theme Park
Capital of the Philippines
 Boardwalk Water Park
 Subic Aviary and Bird Park
 Holy Land Subic Sanctuary &
Theme Park
 Treetop Adventure Expansion
 Moonbay Marina’s River Walk
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
45
2013 Plans and Prospects
TOURISM
Subic Bay as the country’s top
sports tourism site
 Continuation of current sports events
in sailing, marathon, triathlon, boxing,
cycling, beach volleyball and water
sports
 Completion of Binictican golf course
 Manny Pacquiao’s Sports Complex
 Minanga Golf Course
 Muy Thai, UFC, American Football
special events
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
46
2013 Plans and Prospects
TOURISM
Boardwalk Development Project
 Resom Resort Hotel and Casino
 Legenda Hotel and Casino
 Prospective developers for “blue skeleton”, Boardwalk area, and SBMA
offices block
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
47
2013 Plans and Prospects
TOURISM
West Ilanin Redevelopment Project
 Resom Villas & Spa Resort
Central Business District
 New Royal Choices shopping center
 Harbor Point Transport Terminal and Retail Area
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
48
2013 Plans and Prospects
INDUSTRIAL LEASES
REGULATORY
 Expansion of SBMA territory
 Creation of joint SBMA –BOC
Technical Working Group to more
effectively combat smuggling
 Streamlining of business
processes to reduce requirements
and improve delivery of services
 Amendments to existing
agreements with other agencies or
implementation of new agreements
 Enhancement of safety culture
through CommunityWatch
campaign and intensified LED
security activities
through EO 675 in Redondo and
Hermosa area for new ship
builders and industrial locators
 Belgium-based Enfinity
Philippines Renewable Resources,
Inc. (Solar power generation facility
to be operated by one of the
world’s leading developers of solar
photovoltaic [PV] projects)
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
49
2013 STRATEGIC PLAN SUMMARY
 Maximize land use potential of the Freeport
 Aggressively pursue JICA recommendation to use Subic
as alternate port to decongest Manila
 Develop the airport for general aviation, aircraft repair, jet
charters and other allied aviation activities
 Fully exploit tourism potential by creating new attractions
and destinations, promoting MICE, sports and theme parks
to attract more tourists
 Invest in new equipment and infrastructure needed to
support SBMA’s strategic initiatives above
 Improve the Agency’s financial performance further to
provide funds for its Strategic Plan
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
50
GOOD
GOVERNANCE
MAKES GOOD
BUSINESS.
“THE BEST IS
YET TO COME…”